Connecticut IOLTA trust accounting rules are detailed in Connecticut Practice Book, Rules of Professional Conduct, Rule 1.15.
Section 1.15.J requires the following items
General Ledger J.1 – Chronological report of all deposits and withdrawals from the trust account with a running...
Complete examples of IOLTA Trust account reconciliations are rare. Our intro video provides a quick overview of a complete IOLTA Trust account reconciliation. Use the button below to download a copy of the example reconciliation used in the video.
We help law firms pay vendor bills by automating their accounts payable process. This video provides an introduction to our processes and software tools.
S Corps Control Social Security and Medicare Taxes
When a law firm is taxed as an S Corp, the primary tax savings are achieved by controlling social security and medicare taxes.
Law firm owners must pay the social security and medicare taxes withheld from employee paychecks and they must pay the...
Choosing to be taxed as an S Corp does trigger several additional costs.
Payroll Service
S Corp owners are required to receive wages through payroll checks. If the law firm does not have a payroll services in place, a payroll service must be started.
Unemployment Taxes
Once the firm owner...
What’s a reasonable salary for the owner of a law firm?
The IRS won’t specifically define reasonable, there are only guidelines. The IRS notes that the courts have considered the following facts when reviewing salary levels:
- Duties and responsibilities.
- Time and effort devoted...
Most likely, no. The exact answer depends on the type of tax return filed for the law firm.
Firms that file as C Corps (Form 1120)
Firms that file as C Corps are able to directly deduct donations made to charity. However, charitable donation deductions are limited to a maximum of 10%...
Series
- Introduction
- Legal Entities
- Tax Options
- W-9s
- Closing Comments
Table depicts legal entity options available for law firms and corresponding tax return options.
Client received a $1,560 invoice from your law firm. Client decided to round off the amount and mailed a check for $2,000.
Options for depositing the $2,000 check.
- Deposit the full $2,000 to the operating account. Incorrect. The $2,000 check includes $440 of funds the firm has...
Yes, preprinted deposit slips are required.
Appendix B-1 of the 2014 Arizona Client Trust Accounting for Arizona Attorneys guide states “Deposit slips should always be printed with the name of the lawyer or law firm, IOLTA or Trust Account Designation, account number, and routing...
